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2016.06.24

News Headlines - 24 June 2016

EU leaders are to meet to discuss the UK's "divorce" from the organisation after a historic referendum result. The UK voted by 52% to 48% to leave the EU. Prime Minister David Cameron has said he will step down by October.

Donald J. Trump arrived in Scotland just as Britain was deciding to leave the European Union and proclaimed the momentous departure “a great thing” and the subsequent decline of the British pound good for local companies — including his own Turnberry golf course.

Global stock markets lost about $2 trillion in value on Friday after Britain voted to leave the European Union, while sterling suffered a record one-day plunge to a 31-year low and money poured into safe-haven gold and government bonds.

Moody’s Investors Service lowered its outlook on the U.K.’s credit rating to negative from stable after its voters chose to leave the European Union, the latest sign of the vote’s impact on financial markets.

The first wave of “Brexit” damage has made a major hit: Japan. As the U.K. contemplated life after Europe on Friday morning, Japan’s yen made its biggest surge against the U.S. dollar since the midst of the global financial crisis in 2008. The Nikkei 225 Index plunged when news outlets called the result, as circuit breaks temporarily suspended trading. London caused mayhem in Tokyo. Touching less than 99 yen to the dollar, this brings Japan’s currency back to where it started just as Abenomics was ramping up in 2013. With interest rates already negative, a weak currency is one of the few tools Japan has at its disposal. A strong currency will be devastating for efforts to engineer inflation.